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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  December 11, 2015 3:00pm-4:01pm EST

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in part because janet yellen and company have left rates so low, companies need to spend it. and so you've had a record year. pfizer allergan, $160 billion. i know liz is going to be talking to dupont and dow coming up, or so i'm sending it her way. liz: i bet they wish it were the day before, but the news is bringing those names down. you're right, trish, thank you. look at this, wall street headed for its worst weekly loss in a month. see this number on the dow jones industrial average? we're down 269? we've been down 310 today alone. that is making the markets choke. oil dropping below $36 a barrel, heading to $35 in the aftermarket. really? all with just five days before what is expected to be an epic interest rate decision by the federal reserve. we've got our traders lined up to tell you what you need to know heading into the final hour of trade. also weighing on the markets, that deal which creates the biggest chemical company in the world.
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$130 billion marriage between dow chemical and dupont. in the chair we have the leaders who put this deal together. dow chemical's andrew liveris and dupont's ed green on how they plan to get the megadeal past very tough regulators. everybody wants to know. this thing could be facing massive problems. now those divers that you see, they are in that lake again looking for what they now know is electronic evidence leading back, they hope, to the terrorists who killed 14 people last week. we've got a live report. we'll take you to that lake. is the republican party getting really nervous about donald trump as its possible nominee? well, the republican establishment plotting to undermine him at the convention. some people are wondering if that's true. we're going to give you a fox business history lesson and tell you way more of what you need to watch. and major u.s. airlines say this year's top holiday gift is too hot to handle. the president of one hoverboard company is here to tell us why
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his product is safe, should fly the friendly skies and should not be punished for the el cheapos out there. we're less than an hour to the close, let's start the "countdown." ♪ ♪ liz: breaking news, freaky friday for the markets right now. the red on the screen is causing turn tail, run for your lives to treasury's fear, the vix or so-called fear index, look at this. it is jumping 22%, that is a ten week high. the level stands at 23.62. why? i'm not going to blame oil entirely for this, but oil is collapsing again. let's see where it's trading this very second. earlier we should tell you it settled at $35.62 a barrel. look at this now, $35.65, hovering down about 3%. this week it fell 10.9%. that is its biggest weekly drop in a year. electronic trading, we're keeping our eye on all of that,
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but there's a severe fracture elsewhere in the energy world. natural gas prices are testing both three and eight-year technical levels. nat gas falling at one point and now still there below $2 per unit, million british thermal units as they're called, but it's down about 1.5% at the moment. and we point this out because the weather has been so warm that natural gas demand is way off. this all comes as the fed funds futures pits are pricing in a 79% likelihood of a rate hike less than five days from now. so along with the panicky volatility, weaker and weaker oil prices, possible fed rate less than a week away, we have a stress fracture in the high-yield junk bond market. these are take bigger risks, maybe get a better reward. jnk and hyg, both down about 2-3%. we've got traders at the new york stock exchange and the cme. i want to start with steven
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guilfoyle. the bond situation is worrisome because this is something that back in july carl icahn warned people about saying the fed's making people take too many risks and going into junk bonds. is that at work with this third avenue management fund that's trying to liquidate what is now just a $700 million fund, had been two billion, steven? >> oh, this is a big deal. just -- the week ending on wednesday we saw $350 billion worth of retail dollars coming out of high yield funds, and that was wednesday. i'm sure that number's a lot larger now. yes, you can blame oil, but the high yield situation is just as big a deal, and you can throw in the emerging markets. there are fundamental reasons for the selloff on wall street today. liz: well, exactly. what should investors be doing? trevor, tell me if you thinkthit into next week with the concerns we have about what the fed is going to do, trent? >> i think what we're seeing today is going to be indicative of where money goes should this
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volatility continue. i think you're going to see the bid continue to be strong in the u.s. treasuries. i know it's counterintuitive when you're dealing with rate hikes, but you look on the flip side of it, the tangible effect of a quarter point rate hike is not going to be the end of world for the bull market in the treasuries. this meeting tomorrow -- or next week, i should say, is going to be more about the communication on the trajectory of the hikes moving forward than it is if we get a rate hike now. i just think that the bull side of the art for the treasuries, we still have thisdivergence where these european rates are so subdued, i just don't see how you wouldn't go to the u.s. treasury markets with everything else going on. liz: steven, talk about equities right now. tons of red on the screen, and we've got the ceos of dupont and dow chemical. dupont has been a real pulldown for both yesterday and today for the dow jones industrials, but at the moment is the market about dupont,
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or is dupont just getting colored red because of the markets? >> well, we're seeing a broad selloff, and i hate to go to it because it's really easy and convenient, but crude oil is going to be leading the broader market right now. and what it's doing even if you aren't in the energy sector, liz, it's making people scared. and when people are scared, you see this risk-off type of price -- i should say money movement across sectors. that's why we're seeing a strong bid in the treasuries. think dupont could be collateral damage of the turmoil with the oil market. liz: we know the chemical companies need oil products. phil flynn looking at oil, am i overstating to say oil over the past couple days has pretty much collapsed? >> it has, you know? these stock guys always blame oil. if oil goes up, they get blamed, if it goes down, everything's oil's fault. but guess what? it is. it's creating fear right now. we saw that in the vix index today. and that fear is permeating the entire market. but are those fears really justified? i think they're overstating the
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case somewhat. i -- we've got a fed interest rate increase, we got this report from the international energy agency that has not predicted demand correctly even once this year -- liz: i know! why are we listening to them? >> i know. they only missed by a million barrels a day this year. but because they're playing into that negative sentiment after the opec meeting. and i feel like it's déjà vu all over again because during the last opec meeting, prices collapsed from $80 to $40 -- liz: yeah. opec is frozen and paralyzed and a mess. listen, that cartel was long ago in the rearview mirror. steven guilfoyle, tell me right now, are we going down and testing the lows, 300 points to the downside for the dow jones industrials by the end of this session? we've got about 53 minutes to go before we hear the closing bell ring.
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>> you don't want to see anything below 2015 on the s&p 500 today. that's been supported a couple times. if that cracks, and we're really close to it now, we could have something of a bloodbath this afternoon. if we are able, conversely, to get to 2021 and recapture that level, we're a little better off going into the weekend. liz: the s&p is at 2015 right now, oh, that matches the year we're in. good to see you, gentlemen. steven, trent, phil. we know the most volatile stock this week has been dupont. wedding jitters, perhaps, as it announces its marriage merger with dow chemical. how's this going to work? in just two minutes, i've got the leaders of the new dow/dupont mash-up. we've got both chairmen live in this all-important hour of trade. these are widely-held stocks that have been around for hundreds of years. closing bell, as i said, now we're 52 minutes away. clock ticking down.
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the divers are determined, determined to find what they believe is in that san bernardino lake that the san bernardino terrorists tossed. we'll take you live to that lake to tell you specifically what cops think is in there. and we're moments away from an update t from defense secretary ash carter on how the fight against isis is going. he's set to hold a news conference, folks, but this time it's with the british defense secretary. we've got that on our screen, we're ready to take it. the second it happens, you'll know. much more, next on "countdown." look at this, we're down 293 right now for the dow jones industrials. don't go away. ♪ ♪ looks like some folks have had it with their airline credit card miles. sometimes those seats cost a ridiculous number of miles... or there's a fee to use them. i know. it's so frustrating.
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switch to liberty mutual and you could save up to $509 call today at see car insurance in a whole new light. liberty mutual insurance. liz: breaking news, and i just want to mention this, the dow just went down about 307 points in the commercial break, so there was a bit of a hiccup or gap down, more than a hiccup, we're down 292, but for a second there, down 307. a very, very tenuous final hour with 43 minutes to go in trade. we also have this breaking news on the san bernardino massacre. investigators believe those two terrorists on your screen, well, they really now feel they have the evidence to prove they were planning a much bigger-scaled attack. the fbi has strong belief there
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may be a digital footprint left by syed farook and tashfeen malik in that downtown san we were dee know lake including a hard drive that the couple was hoping to destroy. there is word today also that our government failed to detect messages exchanged between the two in which they talked about their jihadist mission. so let's bring in jonathan hunt. he's right there by the divers in san bernardino. first off, jonathan, what's status of the lake search? >> reporter: well, or it is ongoing, liz, and it is painstaking. for the last couple of hours that i've been here, there's been a team of two fbi divers in this lake. each of them is marking out a path about 50 yards wide through that lake. it's marked either end by a white buoy that you can see. they're going through that particular part inch by inch, they're digging down into what is, they tell us, in certain places inches and inches of mud. they're effectively blind in there. it is a very murky, dirty lake.
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they're just feeling their way across, looking for any evidence they can find. maybe that hard drive they're looking for, anything else the fbi has not publicly said precisely what they are looking for in there, but we do believe it is at the very least a hard drive from the couple's computer. so this searcher here, liz, is going to go on for quite some time. separate to that, and this is an interesting development here, the fbi confirms they're looking into potential connections between farook and his former neighbor, enrique marquez, and a man by the name of so heel kabir. we have a court sketch. he was convicted in 2014 having been arrested in 2012 of conspiring to support terrorism and kill americans overseas. now, why is that 2012 date that he was arrested interesting? that's the date that we have been told that farook may have been planning -- along with marquez -- another attack that
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they didn't go through with because they were spooked by those arrests. now, did these people all move in the same social circles? take a look at this map here. we know that sabir worshiped at a mosque in pa mow that, marquez at another nearby mosque in corona. he also met with potential terror recruits at a hookah bar called the velvet room not far away in on tape owe. -- ontario. clearly, the fbi wants to run down every connection and see if all of these men knew each other and were conspiring together. liz? liz: i am stunned but not surprised. jonathan, thank you very much. and we've got those divers, imagine that, inch by inch. if it's in there, they're going to find it. we need to look at this big board, because we are finding big losses at the moment. we are now down more than 311 points at the moment.
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we've just hit the session lows, going further, and the lows are continuing. now it's down 312. we may go down 313, now we're down 315, 17,259. we're going to take you to the floor of the new york stock exchange in a second to see why the sudden drop. we were down already, but something else is going on here. lots of fear in these final minutes. the closing bell is just minutes away, but listen, we've got to get to this story too. it's a huge christmas present story, it can hover, but it can't fly. airlines now saying this year's hottest holiday gift, too hot t to handle. they are banning hoverboards from all flights after some have caught fire. the president of one of the highest-end hoverboard companies is with us, and he's going to tell you, you get what you pay for. and the world's biggest chemical company created today after the merger of dow chemical and dupont is officially announced. standing by live, the leaders of the new dow/dupont mash-up. we're going to ask, does this
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new group have the right chemistry to make the complex plan work? andrew liveris, ed breen standing by. hi, gentlemen, we'll get to you in a sec. ♪ ♪
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liz: and what did i tell you when we went into the break, we were down about 315-319, now we're down 325 for the dow jones industrials. this is a compilation. it's very weak oil, it's concerns about the trajectory of what the federal reserve will do and how fast or how slow. we know it will be very slow, but the dollar continues to be on most days stronger. let's take a look, and we see that heat map at the moment, the only name in the green is procter & gamble, and it's just red across the screen, folks. it's a tough day for the markets all around. a terrible day for fantasy sports companies, and the fans aren't cheering either. in fact, they're booing after new york supreme court justice
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manuel mendez ruled that the two wildly-popular fantasy sports companies must cease operating in the state of new york. both fanduel and draftking plan to appeal, but today marks, look, a victory -- no way you can say it any other way -- for new york attorney general eric schneiderman and his fight against the two sites. now let's get to two stalwarts of american industry, bitter competitors for more than a century have now officially announced, we're married. dow chemical and dupont linking arms today in a bay quantityic deal -- gigantic deal worth $130 billion. today both stocks are falling off along with the broader market. we should mention that dupont is representing about 9% of the dow's fall today. so why is now the time for these two guy gigantic companies to get together, and what will they do together that they couldn't do apart? joining me now, ceo and president andrew liveris along with dupont ceo, ed breen.
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ed, i'll get to you first, because dupont is very much a part of what's pulling the dow down. we'll get to the details in a minute, but why is the market spitting out dupont's stock today? >> yeah, look, liz, i don't worry about one day in the market. andrew and i have been talking to our investors all day today. most of our big ones we've talked to, and they love the deal. they understand the industrial logic to the deal, and they understand the value we're going to create, so, you know, one day doesn't mean anything. if you do the right deal over, you know, the ensuing days, weeks and months, you know, the right thing will happen if we execute. liz: yeah. and, by the way, we have lots of analyst reports. i've been looking through all of them, and most of them really do like this. andrew, the elephant in, i guess forget the room, the chemical lab, so to speak, is the regulators. this deal will face intense scrutiny, and when the current client is such that staples
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can't even combine with office depot, what makes you think they'll say yes to this massive global marriage? >> it's a very unique deal, liz. you know, the deal structure we put in place, ed and i worked very hard on maximum value creation, and it's a merge and spin model where we've already predetermined the businesses coming out. so this is not a scale issue in the traditional regulated department of justice sense. now, of course, we are going to go through the regulators and get all the things that need to be done. in terms of -- you used the word fierce competitors. dow and dupont have been complementary for a long time. we do compete in the agricultural space, and that probably will get a little bit of scrutiny, and maybe ed would like to comment on that. >> we've been through, look, both the dow legal people have looked at it, our antitrust people and outside counsel have looked at it. it's very little areas where, you know, there could be a little bit of concern. but it's amazing, the size of these two companies, and we have
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complementary products to each other, not overlap of product. so it's pretty amazing that, you know, in really is not a big issue in that area. liz: well, the agriculture part of the business is exciting, but get your battle gear on because you guys know commodities are getting torched, crop prices have plummeted, the u.s. dollar is pumping iron. is that going to be a tough promise to keep for your shareholders or that the ag business is going to be so exciting? >> well, you know, one of the beauties with the ag business, first of all, this is going to make us the global leader in the business. secondly, we're going to have the broadest and most diverse portfolio for our customer, the farmer, and that's very important from a market share standpoint. and, third, directly to your point you just made, there are more synergies in putting these two ag businesses together than, actually, the other parts of the business simply because of the overlap of our overhead structure. so we have talked today to our investors about taking $1.3 billion of cost out of the combo
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in the ag business, yet we will have a powerhouse of an r&d machine in that business. so that will really help the profitability of this business very significantly. liz: well, i'd be remiss if i didn't bring up, and you've heard this a million times, but you were both in the past couple of years -- well, ed, before you became the leader of dupont -- but the companies were getting henpecked and harangued by activists. ed, dupont was harangued by nelson peltz, andrew, you had daniel loeb on dow's back. clearly today they may have lost the initial battle, but you say shareholders have won regardless, but that criticism is dupont founded -- and i was looking back in the history -- dupont was founded in 1802, dow in 1897. some would say, at least critics, that you guys have succumbed to short termism to satisfy activists versus long-term, steady success your companies have managed for, or what, a combined 335 years. what do you say to that, andrew?
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>> okay, i'll give first given you asked me. i think the history is one thing. i think it's been widely reported that we at dow have seen this complementarity for a decade. actually, the deal today is even better than the one we thought about nine or ten years ago. liz, the two companies both have strong franchises. we've been building dow up to have a low-cost position and an innovation engine. you visited our labs in philadelphia. you saw the innovation engine. dupont has that as well. but we have multiple businesses each. so now how do we get together, take synergies out of that and then create more pure-play businesses? that strategy's intact. i'd like to call ed an activist, i'd like to call myself an activist. our boards have been activists because of the long-term value creation of sensibility of creating separate portfolios. liz: okay. well, how about this, guys?
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i have been to the pennsylvania labs. what i notice most, brilliant scientists. but if i'm an employee, i'm scared today. am i getting laid off? are my benefits getting cut? how should employees feel about this, ed? >> i go back to what andrew said, first of all. we are building three global, world-leading platforms here, and that's very significant. that, by the way, is growth over the long term. and i did this before at tyco with separating five companies. liz: i remember. >> everyone is a leader in its respect tive field. it's done very well. they've done acquisitions, and they've been hiring people so, yes, we will go through a period on the costs, but these will be very strong companies that they can then build and grow, build up their r&d even more, come out with more products and solutions for our customers. liz: well, i'm looking at two alpha males. who's going to be the real leader here? [laughter] i know there are so many people worrying.
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>> we've put a lot of effort into that question. i think i said it on an earlier discussion, we both checked our egos at the door. this man thinks shareholder value one, two and three, pragmatic, get the job done. i'm a boy from the outback, okay? i have no aspirations to be king of the hill. i want to create value for our shareholders and our employees and our communities. the two of us, i think, hit it off. we understood each other very quickly. we get the job done. he's got the job done, ed's been very, very much successful. we've got a great combination here, but it's not just us. it's we're going to work the whole governance structure and the alignment of teams the next six months to get the job done, and i'm very confident on what i've seen that ed's the leader who can get that done. liz: andrew liveris, ed breen, great to see you both. i'll see you again, because i'm sure the regulatory process will be perhaps a little challenging, but maybe not. we'll see. thanks, guys. >> thanks, liz. liz: again. a tough day.
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we have our eyes on the market here, it is plummeting, but we also have our eye on what's happening. we are waiting, defense secretary ash carter is giving a joint news conference at this moment, but that on the screen is u.k. defense secretary michael fallon. the two have been talking about the progress in the fight against isis, new collaboration opportunities in the battle and this, of course, after u.k.'s parliament voted last thursday to authorize airstrikes in syria. i believe last thursday as soon as they voted, it was, i don't know, four minutes later they were bombing in syria. i'm exaggerating, of course, but the u.k. got to it pretty quickly. closing bell, we're 29 minutes away. we have the dow jones industrials really stress fracturing here, and the s&p is down 39. look at that dow, down 306 points. low of the session more like a loss of 325, so we're off that bottom at the moment. we are watching it second by second. we're also looking at what is, obviously, this year's hottest holiday item. virtually every teenager in america, preteens too -- my
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11-year-old wanted one. we're talking to the man who makes that top shelf hoverboard that justin bieber rides. not the knockoffs, the fancy pants one. he's going to tell us why his ride shouldn't be on the airlines' no-fly list. exempt, that one. that's next on "countdown." ♪ ♪ increased battery life - needed for everything from electric
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. liz: now we've got 24 minutes left before the closing bell rings, possibly not enough time for the markets to claw back, any sense of green we have the dow jones industrials down nearly 300 points. lower by 298. the s&p down 38, the s&p, by the way, on track for its worst week since august, remember what happened in august? china was gyrating all kinds of problems there, dragging us down it was a terrible month,
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seems like we're seeing somewhat of a repeat there. now, let's get to this as we watch the markets, the hottest gift this holiday season is taking some popular heat. the popular two wheel vehicle known as the hoverboard has been grounded by airlines in fears that they will catch fire. there's been several incidents, here's one of them caught on tape. although we don't know the details of this. that one ignited and caught fire due to a high watt lithium battery. but should this deter you from making your children happy? because so many people want it this holiday season. with me now ceo and president john, and, john, justin bieber chose to buy yours. as yours expensive but you say you get what you pay for. what about the this no fly list on ban on hover boards. >> thanks for having me on, first of all, liz? liz: sure. >> appreciate it. actually when you take a look at the devices and some of the knock offs that are getting
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made right now by some of these other manufacturers in china, it is very concerning. personally i wouldn't want to put the safety of my family at risk with some of these other devices. and it really comes down to the components that go into it and the companies that are putting it together. and there's a big disparity between our product and a lot of the other products that are out there. so i actually brought a couple hover boards, we don't call them hover boards, they're person mobility devices, but i have them here, and i can show you really quickly just some of the components. liz: well, what kind of battery. start with the battery. what makes yours go because that has been a point of contention for some of these fires. >> absolutely. so we use the highest quality samsung lithium ion battery. and when you see the construction of our device, the battery is supposed to be properly mounted. the chargers that are used to
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charge the battery have to have the intelligence to shut itself so that it doesn't overcharge didn't he go anything of that nature the battery and then potentially turn into a fire risk. a lot of the manufacturers that are doing knock off boards, their batteries and their insides look like this. you have a very cheaply constructed battery. liz: yeah. >> which tears easily. and if you can see, they use glue to try to secure the battery onto the board. liz: oh, boy. >> so what happens is as people are using it and as it's taking vibration from the ground, it starts to eat heat up, gets loose, the touching of other electrical components in here did -- liz: and then we have what we have on our screen which is one of them possibly catching fire. >> exactly. liz: your price is about $1,800, i wanted people to know because bieber loves yours. here's what the conundrum really is. have you talked to ups or the shippers?
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because if you get these orders in, will they ship at least yours? have you spoken directly to them? tell me what they have said. >> so we ship predominantly through fedex and dhl. also some units through ups. liz: are they going to continue to ship your product? yes, they will. they are aware that we're the original manufacture of this, and they know that we go through a very diligent testing process to each and every device before we put it into the hands of the consumer. a lot of these boards get tested and disqualified before even getting shipped out from china to the united states. so if there is an issue, we detect it before it comes out into the marketplace. liz: well, that's a smart -- >> just to give you some perspective. liz: yeah, quickly. >> i know for a fact in the month of september a million of these boards, the fake boards, left china. so where those boards went, what countries they were
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distributed to, we have no idea but i know for a fact that the market is currently -- so you have companies that make metal doors, led lights, battery chargers, and all kinds of other things shutting down operations and they're focusing on just building this product.and a lot of these comps have no business working with this type of technology. liz: we know that chinese companies are great at knock-offs but not great at creating in many regards. yours to be clear is called the io hawk, john, and that's a great entrepreneurial spirit, go to fedex and show you how you make it, i hope it's a great holiday season for you and your company. >> appreciate that. thanks, liz. liz: bieber likes his. the celebrities like that one apparently. closing bell we're now 19 minutes away. what we've done is put this drop down bug on the right part of your screen but also keeping a very close eye as we see this market fall 315
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points on what we're calling a freaky friday. is the republican planning to sabotage a donald trump nomination at the gop convention? you know he won't stand for that. we've got a fox business history lesson for you on how it has often played out in the past. and the flamboyance ceo of t monial conducting another all out attack on viral video just in time for the holidays. that we're going to show it to you and more than straight ahead on countdown you used to sleep like a champ.
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to get started, visit a local office or call liberty mutual today at take control of your rates. visit a local office or call see car insurance in a whole new light. liberty mutual insurance hgoogle voice response:t inachim sigsa. how long does milk last? google voice; one week after the sell-by date. how much vitamin c is... is in an orange? set timer for twelve minutes. google voice: ok, twelve minutes. where can we find donuts around here? coffee? what about crepes? how about a bagel? what is the most important meal of the day? google voice: breakfast is the most important meal of the day. liz: breaking news.
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the dow was now down about 315 points. real stress fractures as we're calling them on this friday. now, we want to get to this. arguably the wildest ceo in the telecom world has ever seen is at it again. t-mobile ceo john ledger spreading something other than cheer taking potshots again at all of his competitors at his annual holiday greeting. ♪ ♪ . liz: a little musical pop shot there. we have t-mobile moving lower by #% or just under a percent, the entire market is down but this stocking has done quite well. the annual high $43 just off that right now at 36. follow john ledger, @john
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ledger, he doesn't follow a lot of people and he says i follow you, liz, so you should too. >> does he follow me? . liz: no, but i'll get him too if you want, charlie. follow me first, @lizclaman, reportedly working on a plan b. according to the washington post more than 20 republican officials and near those party convene this week to discuss what to do if donald trump remains the frontrunner when the convention rolls around? the consensus was that the party needs to prepare for an outright floor fight or brokered convention as it's called. so it's time for a little history lesson here on fox business. a brokers convention is when no single candidate has a sufficient number of votes to become a nominee. hasn't happened since dewey was nominated in 1948. the gop awesome hasn't need it convention without a clear
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leader since 1976 when ford beat ronald reagan. by the way, both of these times the nominee ended up beating the republican and taking the white house. gallery gasparino and fox news contributor julie. well, this is fascinating but also looks like the gop might be gangs up on donald trump behind his back. >> boy, i tell you if the voters in the republican party give donald trump basically enough delegates to be the nominee and you have the establishment getting together and saying no. no. let's have a broker convention and hold some delegates, i don't think the republican party has delegates the way the democratic party does but they're telling that their own base and own voters that you don't matter. and if i were donald trump -- forget donald trump if i were a republican voter, i would be furious. i'm no fan of donald trump, but he's got the delegates. liz: charlie. the will of the people. >> you know, the market is off 300 -- what was it?
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. liz: 311. >> 311 points. the federal reserve is going to raise interest rates in the middle of a credit bubble bursting that's probably going to make next week look insane. that is the story right now. it is not donald trump. here's the thing. all of this stuff on donald trump is going to pale in comparison to when we really have a recession. liz: especially what the candidates should be focusing on right now, which is what fox business did in our last debate. >> right. liz: and what we'll do in the up coming debate. this is serious. >> right. two stories here. the republican party worrying about donald trump when the world is falling apart and let's face it. we are working into -- that number is so scary right now, and if you know anything about the markets you call up a few people we have right now stuff that carl icahn basically said six months ago. credit markets are overvalued, there's going to be a selling, there's a had you come -- a big hedge fund. liz: what did she third avenue. >> third avenue when that happened back in 2007 there
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was a similar -- you had a financial crisis, i'm not saying there's a financial crisis but if you're the average investor at home and you're watching this, you should be really scared. liz: julie, this battle with the gop group that the washington post has pointed out meeting along with donald trump, ted cruz, and all of this discussion. >> yeah. liz: does that help hillary? >> it certainly does. but i will say this to you to your point, charlie. if we ended up having a recession, it's going to hurt hillary and terrorism continues to be the number one issue for republican voters, and ultimately for all voters, it hurts hillary. the problem is going to be for the people of washington who gathered to try to get rid of donald trump. voters, republican voters trust him more in the economy -- liz: and then what you get is the so-called down ballot affect, all of the races, whether it's senate, house of representatives on the republican side may look and say you guys at the top can't even figure out who's going to lead. this is serious. >> if i'm kelly in new hampshire or john mccain
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in arizona or mark kirk in arizona who is already in donald trump all of them are up next year, i am frantic about what i'm hearing right now. liz: charlie. >> i don't think they have to worry as much as you do. i think that statewide, and i think, you know, legislatures, you know, house of representatives, senate, i think they're okay. i think they can decouple from donald. i think bigger -- you can run against hillary clinton on terrorism and maybe even the economy. it will be the two fer. i will tell you this. this market is so scary right now and i don't know how you do this. how do you raise interest rates in the face of a melt down of credit, commodities and credits? it always spreads to the markets and one of the things that obama -- president obama could also brag about is that i took this market from six to where it is now. 17. if you have a major correction, he can't do that and neither could. liz: charlie gasparino and
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julie, and we are watching this market moment by moment, maria bartiromo was talking mornings with maria 6:00 a.m. eastern, don't miss it, we will be right back k. why put up with that? but the quicksilver card from capital one likes to keep it simple. real simple. i'm talking easy like-a- walk-in-the-park, nothing-to-worry-about, man-that-feels-good simple. quicksilver earns you unlimited 1.5% cash back on every purchase, everywhere. it's a simple question. what's in your wallet? they come into this iworld ugly and messy. ideas are frightening because they threaten what is known.
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liz: just as soon as we said the draftkings was out of business in the state of new york, we have this breaking news crossing the tape, draftkings and fanduel, the fantasy sports sites get to live another day in the state of new york as new york appeals court just let the fantasy sports sites continue business in new york pending another ruling. this is interim. this of course after new york supreme court justice ruled that the two had to cease operations in the state. that happened earlier today but it has just changed. they now can at least for the moment continue operating into the week and i'm sure nfl fans are thrilled, pretty much at session lows right this second. we've got the dow jones industrial tanking, the s&p down 41 points, let me bring in mark, the voice of calm
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here when it comes to investing over capital. 67billion in aassets, mark, is the fed rethinking what they have to do next wednesday? >> i don't think so, liz, i think the last data point that really gave the fed green light to raise interest rates next week was the jobs report and that was a good number. i've got to admit we know in previous meetings when we had events leading up to it that unfolded something that we're seeing at the moment, that certainly gave the fed pause. i expect the press conference accompany the interest rates in that janet yellen will be dubbish and leaves investors well into 2016 saying that the fed is going to be very patient with regard to interest rate hikes going forward. liz: well, mark, there's so much fear, in fact, the vix is now spiking 28% right this second with just a few minutes left. as an investor would you sit tight or go into safer large caps versus small caps?
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what's the plan in the next couple of days? >> i would urge not being shaken out of the market just given the events of today. we know there's going to be turbulence around the fed rate hike date, even though the market looked baked in, we do incur a fed rate hike, other things that are conspiring too include drop in oil prices and obviously the junk bond rather than. we don't think this has contagion in affects and a consequence of stay long but more perspective positions if we continue to see an unsettled equity environment, which is basically our base case as we go forward. liz: well, while the dow is down just under 2%, the nasdaq is lower about 2.25%, terrible day for the tech stocks, mark, and they've been a real winner when it comes to that particular sector. are you worried? >> i'm not but that points to the vulnerability of those tech stocks that were leading the market. it was a very narrow based
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market in which a handful of companies mostly tech related, social media and otherwise internet retailers that were being bought up with almost a growth at any price kind of mo and that's what we're experiencing and contribution to the nasdaq is measured today. . liz: all right, mark, says don't get shaken out of this market. getting shaken by the market, but it's great to see you. thank you so much, mark. you, . liz: i'm just looking, guys, as we pass it over to melissa and dave, we do have crude oil down a pretty significant percentage at the moment, so a lot of this has to do with the fallen commodities. david: that's right. the markets following oil once again. have a good weekend. meanwhile investors are diving for cover as the dow is down well over 300 points right now steve forbes is here to weigh in today's market moves. melissa: and more americans are afraid of another terror attack and that is coming soon.
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a new poll shows cernes at the highest levels since 9/11. david: also political. some of the republican leadership are making plans to fight what could be the party's inevitable nomination of donald trump. new details on what's at stake on that one. melissa: the stocks are plummeting and the final minutes of trade the dow right now is down more than 300 points. david: wow. melissa: as the closing bell sounds on wall street. take a look where we're trading right now. david. david: all right. well, we see everything in red except gold there's a slight particular up in gold, not enough to make much of a difference to investors. they were down as much as 339 points i believe on the dow at one point. so a little bit of a recovery. but a recovery with this market down as much as it is particularly in nasdaq is not much of a relief. melissa: no, absolutely not and look at crude oil there. more on today's big sell off, more from the floor of the new york stock exchange. lori, what are traders talking about there? what's dragging the markets? >> well, oil, if you look at


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